National Energy Grid

Kenya

GRID SUMMARY

The electric power sector in Kenya relies largely
on renewable energy sources such as hydro power and
geothermal, with the supplement of imported fossil
fuels to meet the increasing demand of electricity.
In 2008, total generation reached 6,460 million kilowatt
hours (MkWhs), comprising its main energy sources
from hydroelectric power (50%), oil (33%) and geothermal
(16%). A hydro-led power sector frustrated Kenya with
the production declined of 9% due to drought. Oil-fired
power plants play an auxiliary role and increased
the generation by 23% from 2007 to fill in the shortage
of hydroelectric power. Increasing dependency on imported
oils may raise electricity prices and affect other
economic activities negatively. Geothermal is gaining
attention with the potential of 4000 MW capacities
unexploited in Kenya. To secure the reliable supply
of utilities, Kenya plans to build more power plants
with the total capacity of more than 2000 MW from
the variety of energy sources including geothermal,
hydro, wind, coal, and diesel by 2015.

National annual electricity retail sales amounted
to 4964 MkWhs in 2007 and the steady growth averaged
5.7% for the last 6 years. Such increasing demand
is led by industrial and commercial sectors (71%)
followed by households (23%). However, electricity
serves only about 15% of households including half
of urban households and 4 % of rural residences. Urban
households use electricity and kerosene for lighting,
while dominant rural dwellers illuminate rooms with
kerosene lamps. Extending grids to those who have
no access to electricity has been a major policy.
The networks are extended across the southern part
of Kenya from coastal to western areas through a central
capital, totaling the length 41,000km in 2008. The
lines also connect neighboring countries including
Uganda and Tanzania to trade the bulk of power and
will be further interconnected with Ethiopia.

Reform of the power sector which commenced in the
early 1990s has progressed to promote its efficiency.
The Electric Power Act in 1997 and the Energy Act
in 2006 accelerated the reform by creating an autonomous
regulatory body, unbundling electricity utilities
to promote more private investment in generation and
reviewing tariffs to improve the financial performance
of power companies. Electricity prices in 2009 averaged
USD 8.6 cents per kWh and are relatively cheaper than
those in US (10.34 cents per kWhs). The power utilities
of generation, transmission and distribution are separately
managed by three different state companies. Four Independent
Power Producers (IPPs) and an Emergency Power Producer
(EPP) supports generation mainly through thermal plants,
accounting for 20% of total power generated. The government
promulgated an ambitious target to connect one million
households within five years, so more public and private
investments are expected to develop reliable and affordable
supply capacities in order to achieve the goal.